A series of raids and investigations into luxury brands in Italy have uncovered that Dior has been compensating its suppliers 53 euros (approximately Rs 4,700) per handbag, and subsequently retailing them for 2,600 euros (Rs 2.34 lakh) in its stores, according to a report by the Wall Street Journal.Italian prosecutors just uncovered that Christian Dior pays only $57 to produce shitty bags retailing for $2,780!!!Anyone buying “luxury” bags is a fucking idiot 🤣https://t.co/mjRZCU8e9e— Gil (@Gil000006) July 4, 2024The probe also disclosed that another luxury brand, Armani, acquires bags from suppliers for 93 euros (Rs 8,400) each. These bags are then sold back to the brand for 250 euros (Rs 22,500) and are ultimately priced around 1,800 euros (Rs 1.6 lakh) in stores. These figures exclude material costs such as leather, with additional expenses covered separately for design, distribution, and marketing, as reported by the publication.This revelation has sparked significant criticism towards the luxury brands, with prosecutors condemning them for inadequate supply chain oversight. Although the companies are not facing charges related to these findings, some of the independently owned suppliers could face charges for worker exploitation and employing undocumented workers. At least two illegal immigrants and seven employees working off the books were discovered in these workshops.The report further noted that inspections by Italian authorities in March and April found workers subjected to hygiene and health conditions below the minimum required by an ethical approach. Investigators also revealed that the workers were operating machines with safety devices removed to boost productivity, compromising their safety. Sources caim that workers at the manufacturing units were forced to live there and typically worked from dawn until after 9 pm, including weekends and holidays.
